Tuesday, October 1, 2013
Oct-Dec Crude Steel Output Expected To Rise 8% On Year
TOKYO (NQN)--The Trade Ministry said Tuesday that Japan's crude steel production is forecast to rise 8.0% on the year to 27.97 million tons in the October-December quarter.
Solid domestic demand is expected to contribute to the rise in output, along with more competitive export prices due to the yen's decline against the dollar. If the ministry's prediction is accurate, it will mark the fourth straight quarter of year-on-year growth, although the figure is nearly flat compared with the previous quarter.
For the calendar year, crude steel production is forecast at 110.55 million tons in 2013, exceeding 110 million tons for the first time in five years. In 2008, output reached 118.74 million tons.
Steel demand is expected to rise 5.0% on the year to 24.6 million tons. Of that, 16.09 million tons is forecast to be domestic demand, which is expected to rise 5.5%. Domestic demand will be underpinned by increased construction of condominiums ahead of the consumption tax hike. For manufacturers, solid demand is expected in cars and industrial machinery, although demand from the shipbuilding sector will be sluggish.
Steel exports are expected to rise 4.0% to 8.51 million tons.
(Nikkei Quick News, Oct. 1)